Hundreds of cannabis investors had the opportunity to hear some of the industry's major players make their case in person Wednesday at the Benzinga Cannabis Capital Conference in Miami Beach. CEO Hadley Ford highlighted his company’s M&A activity and growing national footprint.

HENDERSON, NV / ACCESSWIRE / January 18, 2019 / The biggest profit opportunities are usually found buying stocks at or near their bottoms. The old saying goes ''buy low, sell high''. Here are some ''buy ...

CORAL GABLES, FL / ACCESSWIRE / January 18, 2019 / Marijuana stocks have become one of the hottest topics in the news over the course of the past few years. In terms of the US cannabis market, several states have led by example, in terms of how positive legalization can be on a widespread scale. ParcelPal Technology Inc (PTNYF) (PKG), Emblem Corp (EMMBF), Aurora Cannabis Inc (ACB) (ACB), and New Age Beverages Corp (NBEV) are 4 pot stocks worth looking into on Friday.

After slumping in the fourth quarter, the ETFMG Alternative Harvest ETF (NYSE: MJ ), the only dedicated cannabis exchange traded fund listed in the United States, is off to a scintillating start in 2019. ...

The Company will issue US$300.0 million aggregate principal amount of notes, or US$345.0 million aggregate principal amount if the initial purchasers' over-allotment option is exercised in full. Aurora expects to use the net proceeds from the offering of the notes to support its Canadian and international expansion initiatives, for future acquisitions and for general corporate purposes, including working capital requirements to continue the Company's accelerated growth.

Given that diseases are becoming more difficult to treat, it would seem that we are in desperate need of major advancements in healthcare technology, and many of these steps forward have been made possible through the advent of legalized medical marijuana. Towards the tail-end of last year, Canadian Prime Minister Justin Trudeau and members of the Canadian government agreed to legalize recreational/medicinal cannabis usage, resulting in a rush of energy for Canada's cannabis industry. With the global medical marijuana market predicted to reach $55.0 billion by 2024, according to a new research study published by Global Market Insights, Inc, it stands to reason that companies with the ability to combine the complex medical applications of cannabis with integrative healthcare frameworks could create potential opportunities from entering the nascent marijuana industry.

At a time when rivals Tilray (NASDAQ:TLRY) and Aphria (NYSE:APHA) have captured headlines, Aurora Cannabis (NYSE:ACB) finally got a piece of the action again. Earlier this week, management announced its acquisition of premium-cannabis producer Whistler Medical Marijuana. As expected, ACB stock jumped on the news.
More importantly for speculators, the enthusiasm hasn't faded yet, despite that we're now near the end of the week. A significant reason why Wall Street remains bullish is the acquisition's fundamental impact. For the most part, Aurora Cannabis stock is a direct play in medical marijuana. With Whistler, ACB has a broader portfolio.
In addition, management must keep pace with key competitors. One of the biggest announcements in the sector was the partnership between Cronos Group (NASDAQ:CRON) and Altria Group (NYSE:MO). We all know about beverage-maker Constellation Brands' (NYSE:STZ) investment in Canopy Growth (NYSE:CGC). If you're not cutting deals in this sector, you're going nowhere.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
That's all fine and well. The most worrying factor here, however, is dilution in ACB stock. Including Whistler, Aurora has bought out nine companies. Ordinarily, such actions represent a strain on resources. The leadership team sidesteps the issue with all-stock purchases.
* Top 10 Global Stock Ideas for 2019 From RBC Capital
Last year, ACB acquired MedReleaf, Anandia Labs and ICC Labs. In total, the medical-cannabis firm spent $3.6 billion, all in equity. Because management refuses to tap into their cash reserves, Aurora Cannabis stock must take the hit, no pun intended.
Currently, we have 994 million shares of ACB stock outstanding. Just two years ago, we had 313 million shares outstanding. By the time the Whistler deal and possible others are completed, we're looking at well over one billion shares.
For those long Aurora, this dilutive strategy warrants concern. Still, it's too early to get pessimistic.
### With ACB Stock, Focus on the 'Why,' Not the 'How'
Again, under ordinary circumstances, I'd sound the alarm on Aurora Cannabis stock. Diluting shares is a relatively easy way to expand your footprint. But get it wrong, and you could be courting disaster. Even without considering a worst-case scenario, dilutive strategies invite profitability and sustainability pressures.
So what makes ACB stock different? It's all about the inherent nature of the legal-marijuana industry. Unlike almost every other market, cannabis has practically appeared out of nowhere. To deliver long-term success, companies must do everything they can to establish their brand. Therefore, traditional concerns like profitability take a backseat to growth and expansion.
Logically, this strategy negatively impacts investments like ACB stock in the nearer-term. However, I'm afraid no other practical alternatives exist. Like crystal meth or hallucinogenic mushrooms, making weed is relatively easy. Thanks to platforms like YouTube, you can practice "pharmacy."
But due to legalization, the black-market effect no longer bolsters marijuana prices. Therefore, cannabis firms must consolidate to survive as an industry. That's one reason why I'm not panicking over dilution in Aurora Cannabis stock.
The other reason is differentiation. As I just mentioned, weed is easy to grow. What will separate the contenders from the pretenders is product quality.
If you look at Whistler's product portfolio, you can see why management pulled the trigger. Contrary to prior eras, cannabis has dramatically evolved from just a means to get high. Today, medical-marijuana firms have "scienced" the snot out of the underlying commodity.
In the foreseeable future, we'll enjoy a standardized industry where patients can match their symptoms with an ameliorating cannabis strain. To get there, ACB must lay down the foundations.
That's why investors should focus on the "why" (in this case, future profitability), not the "how" (dilution).
### Be Carefully Optimistic Toward Aurora Cannabis Stock
While I agree with management's overall direction, that doesn't guarantee a smooth ride. Analysts who raise the dilution concern aren't wrong. Every action has a reaction. At the very least, each share of ACB stock will be increasingly worth less.
But I highly doubt that shares will become worthless. The deal-making and dilution represent the marijuana industry's harsh realities. Due to low barriers of entry on the production side, current cannabis firms must expand, partially to discourage competitors.
And because traditional financiers are iffy about marijuana's Schedule I classification, for sector players, cash is king. Otherwise, going all-equity on every acquisition is unnecessarily risky.
But again, that's just the reality. This investment category isn't for everyone because we know ahead of time that it's insanely and inevitably volatile. But a careful, longer-term approach to Aurora Cannabis stock should pay off quite nicely.
As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities.
### More From InvestorPlace
* 2 Toxic Pot Stocks You Should Avoid
* 10 Growth Stocks With the Future Written All Over Them
* 7 Reasons Why Buffett's Bet on Apple Stock Is a Good One
* 10 Companies That Could Post Decelerating Profits
Compare Brokers
The post You Can Trust Aurora Cannabis Stock Despite the Dilution appeared first on InvestorPlace.

The marijuana tailwind has been great for the entire sector, but the most well-known companies got there for a reason. It hasn't received the same level of attention, but the neurology sector is seeing a similar tailwind. This is an immense $6 billion market opportunity in the coming years, and these companies are commanding big market valuations as a result.

Aurora Cannabis Inc. said late Wednesday that it planned to raise $250 million via convertible debt. Aurora stock fell more than 6% in after-hours trading. The company said it plans to use the cash for Canadian and international expansion, as well as for acquisitions and "working capital requirements" as the businesses grows. Aurora said it will give whoever buys the debt the chance to buy an additional $37.5 million of convertible debt. The notes will be due in 2024. Aurora stock closed up 4.7% to $7.33 during the regular session as the ETFMG Alternative Harvest ETF fell 1.9%.

Aurora also intends to grant to the initial purchasers of the notes an option to purchase up to an additional US$37.5 million aggregate principal amount of notes. Aurora expects to use the net proceeds from the offering of the notes to support its Canadian and international expansion initiatives, for future acquisitions and for general corporate purposes, including working capital requirements to continue the Company's accelerated growth. The final terms of the notes will be determined by Aurora and the initial purchasers.

As we continue into the new year and watch for the possibilities it may hold, CLS Holdings USA Inc (OTC:CLSH), Aurora Cannabis Inc (TSX: ACB, NYSE: ACB), Charlotte's Web Holdings Inc (CWBHF), and CannTrust Holdings Inc (OTC PINK: CNTTF) represent 4 companies invested in the future of the cannabis industry. CLS Holdings USA Inc (OTC:CLSH) is a diversified cannabis company operating as Cannabis Life Sciences and an integrated cannabis producer and retailer in Nevada through its Oasis Cannabis subsidiaries.

Ryan McQueeney covers the latest Brexit news and Snap's executive exodus. He also recaps earnings results from Goldman Sachs, Bank of America, and United Air Lines. Later, he discusses a busy week for deals in the cannabis industry.

HENDERSON, NV / ACCESSWIRE / January 16, 2019 / There are several companies we've found starting 2019 off on a good foot. The market rally has helped investor confidence, which has led to oversold companies ...

New York state's path to adult-use cannabis legalization will get clearer Tuesday when Gov. Andrew Cuomo lays out his plan to legalize the recreational use and sale of the drug at his State of the State address at 2 p.m. ET. Cuomo, who previously opposed legalization efforts, said in a radio interview that legalized marijuana could raise about $300 million in annual revenue for the state through taxes. Cuomo cited legalization in Massachusetts and pending legalization in New Jersey when questioned about whether the state should legalize.

HENDERSON, NV / ACCESSWIRE / January 15, 2019 / Below are some of the better opportunities on the cannabis market for investors. One we like a lot isn't even technically a cannabis company at all. Clean ...

Stocks Mixed As Everyone Confused About China With nothing compellingly good or bad out about China today, US stock market indexes are mixed. The Dow is down after being up earlier, the S&P is flat, and the Nasdaq is slightly higher as of the early morning. China is reportedly cutting taxes and increasing spending, which […]
The post Market Morning: China Buys Oil, Aurora Buys Whistler, Shutdown Hurts Airlines, Brexit Disaster Unfolding appeared first on Market Exclusive.

HENDERSON, NV / ACCESSWIRE / January 15, 2019 / The market's performance last year has created some amazing buying opportunities. We've found a few low priced companies with upside potential that are coming ...

After a late 2018 plunge, cannabis stocks have been on a tear to start 2019 due to a confluence of tailwinds, as I predicted in December. You've had analysts initiate coverage on the industry with a bullish skew. You've had early stage investors talk up the long-term potential of these companies. M&A chatter has picked up and legislation has moved in the right direction. All together, the big four pot stocks -- Canopy Growth (NYSE:CGC), Tilray (NASDAQ:TLRY), Cronos (NASDAQ:CRON) and Aurora (NYSE:ACB) -- are all up more than 30% in 2019 already, and it's not even halfway through January.
This trend will persist because 2019 will mark the year that cannabis stocks enter into the U.S. market.
The 2018 Farm Bill legalized hemp across America. But, Canadian cannabis companies have had a tough time entering the U.S. market due to cross-border restrictions. Canopy has worked around the restrictions, and was recently awarded a license to process and produce hemp in the state of New York. CGC stock rose 10% in response to the news.
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
This is more than just a one-off catalyst. The New York State hemp license is the beginning a multi-quarter and multi-year excursion for Canopy into the multi-billion dollar U.S. CBD market. As the company embarks on this excursion, its leadership position will grow, its moat will grow, revenues will grow, profits will grow, visibility will grow and CGC stock will rise.
As such, now isn't the time to sell CGC stock. Instead, it's the time to double-down on the long-term bull thesis of Canopy turning into a $100 billion company one day thanks to the global proliferation of legal CBD products, and Canopy's ability to stay at the top of this burgeoning market.
### CGC: Buy the Rumor & Buy the News
For contextual purposes, let's provide a timeline of what has transpired over the past few weeks and why CGC stock is up 60% since Dec. 20.
First, on Dec. 20, U.S. President Donald Trump signed into law the 2018 Farm Bill, which nationally legalized hemp. In response, Canopy Growth issued a press release commending the U.S. on passing this bill, and saying that Canopy is ready for a U.S. market launch. Roughly two weeks later, Canopy talked about its hemp production potential in Canada, and its desire and capacity to replicate that production in the now legal U.S. market. A few days after that press release, Canopy announced it had received a groundbreaking New York State license to do just that.
In other words, the writing has been on the wall since the Farm Bill passed that Canopy was going to enter the U.S. market. Investors sniffed out that a potential licensing deal was in the works, and bid up CGC stock 60% in anticipation of that deal.
Yet, even though this was a massive "buy the rumor" rally, you didn't get a typical "sell the news" response. Instead, you got "buy the rumor, buy the news", as CGC stock rose 10% in response to the New York State license news.
* 10 Companies That Could Post Decelerating Profits
Why? Because the implications of this license are huge, and indeed big enough to keep bulls in control and bears on their heels.
### The U.S. CBD Push Has Begun
Canopy isn't just going to produce industrial hemp in New York, and stop there. Instead, this is just the first step of what will turn a multi-year expansion into the multi-billion dollar U.S. hemp market. Thanks to the passing of the Farm Bill, some industry insiders peg this market as measuring in at $22 billion in revenues within the next several years.
Canopy's market cap is just $13 billion.
Thus, this company is in the very early stages of entering a market that is twice the size of the company. This opportunity comes on top of early stage growth in a Canadian cannabis market that projects to also be a $10 billion market one day.
All together, the U.S CBD push from Canopy has begun. It won't stop anytime soon. That means big growth is in store for the company over the next several quarters. Such big growth will keep bulls in control, bears on their heels and the stock on a winning trajectory.
As such, the outlook for CGC stock to keep rallying in the near to medium term is quite favorable.
### Canopy Growth Is a $100 Billion Company In The Making
The big picture behind CGC stock is that this is a company that is second-to-none in terms of size, innovation, leadership, resources, production capacity and expansion in a rapidly growing global CBD market that projects to be huge one day.
There's plenty of reason to believe, given CBD's medicinal and recreational applications and widespread use among younger demographics, that the global CBD market will be as big as the global alcohol and tobacco markets one day. Both of those markets are in the $700 billion to $1 trillion-plus range. Conservatively, let's say the cannabis market maxes out around $500 billion in a decade. Let's also say that Canopy only controls about 5% of the global market, and runs at an alcoholic beverage market average of 30% operating margins.
* 7 Video Game Stocks on Steep Discount
Back of the envelope calculations produce $25 billion revenue potential and $7.5 billion operating profit potential for CGC within a decade. Taking out 20% for taxes and throwing a market-average 16x multiple on the net profits, one can easily see how CGC stock could be worth nearly $100 billion in a decade.
That potential valuation is 10 years away. CGC stock has a market cap of just over $10 billion today. Thus, this is a potential ten-bagger over the next decade. Granted, ten years is a long time, and a lot could happen between now and then. But, a New York State hemp license is a big step in the right direction toward CGC stock realizing its $100 billion potential.
### Bottom Line on CGC Stock
A New York State hemp license is big news, and a huge step toward this company maintaining its leadership position in the rapidly growing global CBD market. So long as this company keeps taking steps to defend market share, CGC stock has the potential to turn into a $100 billion company one day.
As of this writing, Luke Lango was long CGC and CRON.
### More From InvestorPlace
* 2 Toxic Pot Stocks You Should Avoid
* 10 Key Emerging-Market Stocks to Buy for Contrarian Investors
* 7 Stocks at Risk of the Global Smartphone Slowdown
* 7 Pharmaceutical Stocks That Just Raised Prices This Year
Compare Brokers
The post Why Canopy Growth's Arrival in the U.S. Will Be Huge for CGC Stock appeared first on InvestorPlace.

Aurora Cannabis Inc. said Monday it intends to acquire the one of the last independent members of the so-called “blessed eight,” a group of marijuana companies given the first approval to move cannabis genetics from the black market into the legal regime.

Cannabis investors saw a pair of notable moves in popular stocks on Monday, with Canopy Growth (CGC) moving 11% and Aurora Cannabis (ACB) adding nearly 7% on the back of exciting deals for both companies.